Is it worth the cost?
Instagram’s premium ad prices have many businesses wondering: is it worth the cost? SocialTimes says ads on the social network should avoid the “hard sell.” Instead, businesses should focus on creative narratives and visuals that lead to conversions through other outlets like Facebook. Early data suggests that seeing Instagram only as a branding tool could be a mistake, however.
Some stats
Salesforce, one of the partners for Instagram’s ads API, found that Instagram ads cost 90% more per ad impression than Facebook at $6.29 per thousand impressions. While you might look at that higher cost for impressions, Salesforce also found that the cost per click-through on Instagram is $0.42- only $0.02 more than Facebook.
Instagram also enjoys a superior 1.5% click-through rate that is nearly double Facebook’s 0.84% click-through rate for ads.
Why is Instagram so expensive?
Instagram ads are currently at a premium because of its young user base, a core demographic for advertisers, and because of the higher conversions. Although there is some speculation that the high conversion rates are partially due to the novelty of new click-through ads it is important to note that Instagram has had sponsored posts for several years.
Another factor that lends value to Instagram ads is their equal size and positioning to regular posts, whereas Facebook ads are sometimes relegated to the sidebar or other minimized locations.
What works?
Direct-response campaigns, where app installations or website visits are the call-to-action, are doing especially well. As these advertisers drive up prices, it would appear that contrary to the SocialTimes stance, brand advertisers may wish to focus their marketing dollar in other areas. Any social media campaign requires a presence on both Facebook and Instagram, but which network is prioritized depends on whether raw impressions and branding or a click-through is more valuable.
#InstagramVsFacebook
Alfred Alex M.
June 28, 2016 at 5:05 am
That’s very well said. There are many businesses which are gaining more customers via Instagram campaigns esp. which are unique and are startups.Taking look at customer insights of Instagram , users are young and open to welcome and opt new products and services.